(2021-06) Report on the Country's Financial Situation and the Efficiency of Public Expenditure (RSFPEDP VIII), FY 2020-2021

CSCCA (Cour Supérieure des Comptes et du Contentieux Administratif) • 2021

Summary — This report by the CSCCA analyzes Haiti's economic and financial situation and the effectiveness of public spending for the 2020-2021 fiscal year. It highlights a third consecutive year of economic contraction (-1.8% GDP), a significant budget deficit of 55.5 billion gourdes, and rising public debt. The report also assesses the efficiency of public spending by key ministries, noting a general inefficiency in investment allocation.

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Key Findings

Haiti's economy contracted by 1.8% in 2020-2021, marking the third consecutive year of negative GDP growth, driven by sociopolitical crises, insecurity, and natural disasters.
Public finances recorded a record deficit of 55.5 billion gourdes in 2020-2021, the largest in five years, due to lower-than-expected revenues and higher-than-planned expenditures.
Public debt reached 458.57 billion gourdes in 2021, a 140% increase over five years, with a significant portion linked to the poorly managed Petro Caribe program.
Public spending efficiency was mitigated; while administrative functioning expenses were high, investment spending by key ministries (MTPTC, MSPP, MENFP, MAST, MEF) was very low and ineffective, often due to lack of external funding.
The country's financial vulnerability increased in 2020-2021, with international aid representing 19.56% of total revenues, highlighting a growing dependence on external resources.

Full Description

The 2020-2021 fiscal year in Haiti was marked by a severe economic contraction, with GDP falling by 1.8% for the third consecutive year, exacerbated by sociopolitical crises, widespread insecurity, and the August 2021 earthquake. Public finances deteriorated significantly, resulting in a record budget deficit of 55.5 billion gourdes, the largest in five years. Public debt reached unprecedented levels, increasing by 140% over the last five years to 458.57 billion gourdes in 2021, with a substantial portion linked to the Petro Caribe program. The report criticizes the government's unrealistic budget forecasts and its heavy reliance on monetary financing, which contributed to high inflation (15.9% average). The analysis of public spending efficiency revealed a mixed picture. While recurrent expenditures, particularly for administrative functioning, were high and often exceeded forecasts, investment spending remained very low and largely ineffective. Key ministries like MTPTC, MSPP, MENFP, and MAST showed poor execution rates for investment projects, often due to a lack of external funding or inadequate internal resource mobilization. The report emphasizes the country's increasing financial vulnerability due to growing dependence on international aid and calls for more realistic budgeting, improved domestic resource mobilization, and better management of public debt and investment programs to foster sustainable economic growth and social stability.

Topics

Geography

Time Coverage

2020-10-01 — 2021-09-30

Keywords

Haiti, public finance, budget, economic situation, public spending, public debt, inflation, governance, economic recession, 2020-2021, CSCCA, investment

Entities

Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA), Ministère de l'Économie et des Finances (MEF), Banque de la République d'Haïti (BRH), Institut Haïtien de Statistique et d'Informatique (IHSI), Ministère des Travaux Publics, Transports et Communications (MTPTC), Ministère de la Santé Publique et de la Population (MSPP), Ministère des Affaires Sociales et du Travail (MAST), Ministère de l'Éducation Nationale et de la Formation Professionnelle (MENFP), Caisse d’Assistance Sociale (CAS), Fonds National d’Éducation (FNE), Fonds d’Urgence (FDU), Jovenel Moïse, Banque Mondiale, CONATEL

Notes

Series: RSFPEDP (annual). FY2020-2021, 'RSFPEDP VIII' (8th edition). Publié le 2021-06-06 per site listing. Largest file in this batch (~13.6MB, still under the 25MB cap).